Vossloh expands service portfolio in Northern Europe through acquisition of Scandinavian Track Group (STG)

STG is a leading company in the fields of switch services and track-specific welding services in Sweden.

Vossloh signed an agreement with the owners of its longstanding business partner Scandinavian Track Group (STG) to acquire the group. STG is a renowned provider of a broad portfolio of services with a sales focus on the fast-growing and strategically important Swedish rail infrastructure market.

STG offers various maintenance services for the rail track. STG is the market leader in Sweden for services relating to switches, such as their installation or maintenance, as well as for sophisticated welding services on the rail track. STG also offers a wide range of inspection consulting services based on its extensive technical expertise.

The purchase and refurbishment of used switches and other track components for resource-saving reuse completes STG's offering. The acquisition thus fits seamlessly into Vossloh's sustainability strategy and expands the service portfolio in the area of the circular economy. In the future, Vossloh will be ideally positioned in this region to offer the complete value chain of switches, from development and production to maintenance and the reconditioning of used switches.

"STG fits perfectly to our portfolio, offers many synergies and strengthens our position in the innovative Swedish and, in the long term, Scandinavian market. The acquisition follows our one-stop-shop approach, according to which we offer our customers tailormade solutions across all divisions. In this way, we can fully utilize our strengths, further differentiate ourselves from the competition and offer our customers decisive added value from a single source. We are particularly pleased to welcome STG, a long-standing business partner, as a new member of the Vossloh family," says Oliver Schuster, CEO of Vossloh AG.

The acquisition is expected to be completed in mid-2024 and is subject to the approval of the transaction by the Swedish Competition Authority and the Swedish Ministry of Economic Affairs. STG employs around 120 people, generated the equivalent of €22.3 million in sales revenues in the 2023 financial year and will strengthen the Lifecycle Solutions division in future.

Jan Furnivall, COO of Vossloh AG, comments: "I also warmly welcome the new colleagues to Vossloh and am convinced that we can quickly grow together into an even more powerful team thanks to our long-standing and successful partnership. Our common goal is to provide our Scandinavian customers with an even wider range of customized solutions for the life cycle of rails and switches in the future."

Vossloh is already represented by various subsidiaries in Northern Europe. The largest of these is Vossloh Nordic Switch Systems, which belongs to the Customized Modules division and is based in Sweden. Here, more than 185 employees produce switch systems for the Scandinavian market and for export. In addition, the subsidiary Vossloh Rail Services Scandinavia, based in Örebro, Sweden, which is part of the Lifecycle Solutions division, provides comprehensive services related to the maintenance of rails and switches. In the 2023 financial year, Vossloh generated sales revenues of just under €140 million in Northern Europe. Vossloh expects demand in this market to continue to rise in the future.

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